The Union Cabinet approved the continuation of two programs on January 1 - PM Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme with an overall outlay of Rs 69,515.71 crore from 2021-22 to 2025-26. The Cabinet said this would help in risk coverage of crops from non-preventable natural calamities for farmers across the country till 2025-26.
The Union Cabinet has approved the creation of the Fund for Innovation and Technology (FIAT) with a corpus of Rs. 824.77 Crore to facilitate large-scale technology integration in the implementation of the scheme. This will enhance transparency and streamline claim calculation and settlement processes.
The fund will be used to support technological initiatives within the program, such as YESTECH and WINDS, as well as Research and Development studies. YES-TECH, a system utilizing Remote Sensing Technology for yield estimation, assigns a minimum 30% weightage to technology-based yield estimates.
Currently, nine major states are implementing YES-TECH (including AP, Assam, Haryana, Uttar Pradesh, MP, Maharashtra, Odisha, Tamil Nadu, and Karnataka), with other states being onboarded swiftly. The wider implementation of YES-TECH aims to phase out Crop Cutting Experiments and related issues gradually.
Claims calculation and settlement for 2023-24 have been completed under YESTECH, with Madhya Pradesh adopting 100% technology-based yield estimation.
The Weather Information and Network Data Systems (WINDS) project plans to establish Automatic Weather Stations (AWS) at the block level and Automatic Rain Gauges (ARGs) at the panchayat level. The goal of WINDS is to significantly increase the current network density in order to gather hyper-local weather data. As part of this initiative, only data rental costs will be incurred by the Central and State Governments.
Nine states, including Kerala, Uttar Pradesh, Himachal Pradesh, Puducherry, Assam, Odisha, Karnataka, Uttarakhand, and Rajasthan, are currently in the process of implementing WINDS, while other states have also shown interest in joining the initiative.
Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-sponsored crop insurance scheme that brings multiple stakeholders together on a single platform.
PMFBY aims to support sustainable production in the agriculture sector by providing financial assistance to farmers facing crop loss or damage due to unforeseen events. The scheme also aims to stabilize farmers' income, encourage the adoption of innovative agricultural practices, and ensure the flow of credit to the agriculture sector for food security and crop diversification.
The Restructured Weather Based Crop Insurance Scheme (RWBCIS) was introduced by the Government of India in 2016 to safeguard farmers against financial losses caused by unfavorable weather conditions. These conditions encompass factors such as rainfall, temperature, wind, and humidity.
The scheme offers coverage for a range of crops, including food crops, oilseeds, and commercial or horticultural crops. Its primary objective is to provide comprehensive insurance protection for various perils like drought, flood, cyclone, and hailstorm, thereby mitigating the impact of crop damage on farmers.